Alphabet Inc (NASDAQ:GOOG) stock rose 6.80% (As on Feb 2, 11:36:58 AM UTC-4, Source: Google Finance) after the company reported higher-than-expected fourth-quarter sales as the search-engine giant’s internet advertising and cloud computing businesses benefitted over the holiday season from the growing surge in online shopping. The company’s third straight quarter of record sales reflects the growth of ad-laden Google services such as internet search, email and YouTube video streaming, since the coronavirus pandemic made hybrid work and e-commerce customary across much of the world. Google had said that during the third quarter, it lost some sales because companies running low on product trimmed marketing and new iPhone privacy measures curtailed its ability to track users online. On the other hand, Alphabet Inc. announced a 20-for-1 stock split in the form of a one-time special stock dividend, aiming to draw a wider audience for its shares. The stock split could lead to Alphabet’s listing on the Dow Jones Industrial Average, one of the most commonly quoted indexes that holds 30 blue-chip companies. It could also help the company on its path to cross a $2 trillion market cap. A prior stock split happened in 2014, after the company’s shares topped $1,000.

GOOG in the fourth quarter of FY 21 has reported the adjusted earnings per share of $30.69, beating the analysts’ estimates for the adjusted earnings per share of $27.56. The profit benefited from unrealized gains from Alphabet’s investments in startups, and the company also got a $2 billion boost last year from extending the useful life of its servers and networking gear. The company had reported the adjusted revenue growth of 32 percent to $75.35 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $72 billion, according to financial analysts tracked by Refinitiv. Google Cloud, which serves clients such as online shopping software maker Shopify Inc, increased quarterly revenue by 45% to $5.5 billion, above estimates of $5.4 billion. The division’s operating loss narrowed by 45% to $3.1 billion in 2021. Cloud is exploring how to support clients that want to use blockchain, one of several emerging technologies that proponents view as crucial to kickstarting a new era of online innovations. Alphabet also reported a quarterly sales record during the holiday season for its Google Pixel smartphones, despite what Pichai called “extremely challenging” supply constraints.